What is Custom and Practice in Employment?

Custom and practice relates to long standing working arrangements and practices that have become the norm.  These customs and practices may therefore automatically become part of an employee’s working terms and contract by virtue that they are implied into the contract of employment even though they are not explicitly written in any documents such as the contract or policies. 

There is no set time period as to when a certain practice or arrangement becomes officially implied, but it has to be a long standing occurrence that is continuously applied and expected.

Examples of what may lead to a custom and practice includes: 

• Paying a Christmas bonus
• Commission payments or allowances
• A restaurant paying customer tips over to employees
• Working Monday to Friday (and there being no shift rota arrangements or explicit contractual requirement to work weekends)
• Finishing early on a Friday
• To/ from work transport being provided

Employers should be cautious therefore when considering the potential removal or changing of something that is long standing and may be considered to be an implied contractual terms by virtual of customer and practice.  It may be that consultation with employees is required and their specific consent to remove or change the matter in question.